ABSTRACT
The concept of innovation has broadened to be much beyond innovative technologies and basic research to consider a more comprehensive set of sources for value creation including economic, social, and environmental values. Sufficient number of indicators and metrics should be used to provide a comprehensive view of innovation activities in the company. This chapter addresses the measurements that are necessary for managing innovation effectively and efficiently for the success of a company in its market environment. Measurements are necessary to understand the status of the “system,” be it an organization, a specific project or a portfolio of innovation activities. The literature on innovation measurements exhibits a variety of proposals for classifying and determining important innovation indicators. The development of appropriate measurements for innovation is a function of the company’s understanding of innovation and adequate processes for its management.
